Tag: Inequality

Are Tax Expenditures a Good Way to Redistribute?

| 1 July 2016
Blog, Fiscal | Tags: Inequality, Tax Expenditures, Taxes
Since 2007, governments across several European countries have implemented cuts to their social programs in an attempt to tackle the fiscal deficits generated by the last economic and financial crisis. At the same time, they have increasingly made use of various tax related measures to ... continue reading

Central Banking and Inequality – Taking Off the Blinders

, and | 16 June 2016
Blog, Monetary | Tags: Central Banks, Ethics, Inequality
Since the financial crisis, the relative importance of monetary policy in the toolbox of macroeconomic policies has increased. In parallel, we have seen a renewed social and political concern with rising inequalities in income and wealth. However, the two trends are rarely connected.[1] Despite studies ... continue reading

Energy Subsidies – Widespread, Significant, and Largely Not Reaching the Poor

| 18 April 2016
Blog, Fiscal | Tags: Energy, Inequality, Subsidies
Energy subsidies are widespread and significant. In 2014, according to the IEA (2015), government support for global fossil fuel consumption amounted to 490 billion US$. An IMF working paper (Coady et al., 2015) reports even higher numbers. Distinguishing between subsidies before (pre) and after (post) ... continue reading

Finance, Growth and Inequality

and | 31 March 2016
Blog, Fiscal, Monetary | Tags: Financial Markets, Inequality
Finance is the lifeblood of modern economies, but too much of the wrong type of finance can hamper economic prosperity and social cohesion. We have taken a holistic approach to study the consequences of finance for the inclusiveness of growth, in the spirit of the ... continue reading

Monetary Policy According to HANK

, and | 10 March 2016
Monetary, Working Papers | Tags: Inequality, Interest Rates
We revisit the transmission mechanism of monetary policy for household consumption in a Heterogeneous Agent New Keynesian (HANK) model. The model yields empirically realistic distributions of household wealth and marginal propensities to consume because of two key features: multiple assets with different degrees of liquidity ... continue reading